• Ashruti Nigam
• Dr. Yogesh Puri

The CAPM is a universally used measure by the investor, to calculate the amount of risk involved and rate of return that he should expect from the investment. This paper aims to find the applicability of CAPM model in the Bombay Stock Exchange (BSE), and also to construct a relationship between risk and return of the portfolio. This paper also evaluates the return of individual securities of the portfolio calculated from the CAPM model to actual return. The portfolio for this study is created by taking the top 10 companies of BSE on the basis of Market Capitalization, for which the time period of 2014 to 2018 is considered. Hence the research finds that the results dropped by CAPM model have a huge difference to the actual return offered by the market. So, the CAPM model is not valid for the Indian stock market.

CAPM Model, Investment, Financial Market, Investment decision

"THE EMPIRICAL STUDY OF CAPITAL ASSET PRICING MODEL IN INDIAN STOCK MARKET", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.6, Issue 6, page no.587-601, June 2019, Available :http://www.jetir.org/papers/JETIR1908242.pdf

"THE EMPIRICAL STUDY OF CAPITAL ASSET PRICING MODEL IN INDIAN STOCK MARKET", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.6, Issue 6, page no. pp587-601, June 2019, Available at : http://www.jetir.org/papers/JETIR1908242.pdf